Promoting Financial Well-Being: What We Know So Far

On 22 October 2026, President Prabowo Subianto formally inaugurated the National Financial Well-Being Council (Dewan Nasional Kesejahteraan Keuangan or DNKK) at the National Coordination Meeting of the Regional Financial Access Acceleration Teams (Rapat Koordinasi Nasional Tim Percepatan Akses Keuangan Daerah or Rakornas TPAKD) in Jakarta. As reported by ANTARA on the same day, the establishment of this council replaces the National Council for Financial Inclusion (Dewan Nasional Keuangan Inklusif or DNKI), which had been established in 2006.

According to a press release issued by the Coordinating Ministry for Economic Affairs on 23 October 2026, the establishment of the DNKK is based on Government Regulation Number 42 of 2026. However, as of the preparation of this article, the full text of the regulation is not yet publicly accessible. Accordingly, the analysis of the DNKK's functions, powers, and oversight mechanisms in this article refers to available official government information and news reports, while the details of the provisions under the Government Regulation remain subject to verification once the full text becomes accessible.

What, then, is the background to the establishment of this new institution, what powers does it have, and what are its lines of accountability?

From Having a Bank Account to Financial Well-Being

The establishment of the DNKK broadens the focus of government policy from financial inclusion to the financial well-being of families. In a press release issued by the Coordinating Ministry for Economic Affairs on 23 October 2026, Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the policy focuses on three aspects, namely:

1. financial wellness, or a sound financial condition;

2. financial resilience, or the ability to withstand financial shocks; and

3. financial security, or a sense of security in managing finances.

These three aspects form part of a financial well-being approach that focuses on the family as an economic unit.

According to the press release issued by the Coordinating Ministry for Economic Affairs, the OJK's 2026 National Survey on Financial Literacy and Inclusion recorded Indonesia's financial inclusion rate at 93.61%, while the financial literacy rate reached 69.57%.

In the survey, these two indicators measure different aspects. Financial inclusion concerns public access to financial services, whereas financial literacy concerns the knowledge, skills, and confidence that influence financial decision-making.

Broadly speaking, the DNKK is intended to strengthen the coordination of government policies aimed at improving family financial well-being. Its focus includes strengthening financial literacy, expanding access to financing, and increasing the benefits of financial services for the public, including micro, small, and medium-sized enterprises (MSMEs), as explained in the press release issued by the Coordinating Ministry for Economic Affairs on 23 October 2026.

At the inauguration of the DNKK on 22 October 2026, President Prabowo also announced a target of Rp400 trillion in people's credit disbursements in 2027. The financing is intended for farmers, fishers, communities in rural and remote areas, and low-income groups in urban areas.

What Are the Powers and Institutional Position of the DNKK Within the Financial Sector Regulatory Framework?

Currently, financial sector regulation is carried out by two principal institutions:

• The Financial Services Authority (Otoritas Jasa Keuangan or OJK), which is responsible for regulating and supervising the financial services sector from a microprudential perspective, as well as for consumer protection, in accordance with the applicable provisions;

• Bank Indonesia, which is responsible for monetary policy, the payment system, and macroprudential policy.

According to ANTARA's reporting, the DNKK will be chaired by the President, with the Coordinating Minister for Economic Affairs serving as Executive Chair, and will involve the leadership of the OJK, Bank Indonesia, the Minister of Finance, and several other ministers.

It remains unclear how the DNKK will interact with existing financial institutions, where it will be positioned within the government structure, and how its reporting lines will operate.

Conclusion

The establishment of the DNKK marks a shift in the government's approach from expanding access to financial services towards improving family financial well-being. However, the effectiveness of this institution will depend not only on policy targets and coordination but also on the clarity of its powers, institutional relationships, and accountability mechanisms. Accordingly, further examination of the full text of Government Regulation Number 42 of 2026 is necessary to establish clarity regarding the DNKK's mandate, institutional position, powers, and accountability mechanisms.

Sources:

• Coordinating Ministry for Economic Affairs, press release dated 23 October 2026, “President Prabowo Launches the National Financial Well-Being Council, Targets Rp400 Trillion in People's Credit Disbursements in 2027”

• ANTARA, news report dated 22 October 2026, “President Prabowo Formally Inaugurates the National Financial Well-Being Council”

• Financial Services Authority, 2026 National Survey on Financial Literacy and Inclusion (SNLIK)